Premiums have long been a powerful tool for customer loyalty and satisfaction. But what exactly are premiums? In short, these are the little extras that companies give their customers, like printed pens, notebooks or even more luxurious gifts such as watches or Bluetooth boxes. Although such gifts may seem simple at first glance, they have a much bigger impact than you might think.
The power of premiums on brand recognition
Why do these little extras have such a big impact? The answer lies in the combination of visibility and emotion. When you give away a premium, your brand literally stays in the hands of the recipient. It then becomes a tangible reminder of your brand. This not only strengthens brand recognition, but also makes customers feel a stronger emotional connection with your brand.
The psychology of premiums: why are they so effective?
The effectiveness of premiums can largely be explained by psychology. People love gifts, as do you, because they evoke a positive feeling. Gifts also create a sense of appreciation. This feeling of appreciation is subconsciously associated with your brand by giving the gift. Customers are subsequently more likely to use your services again or recommend your company to others.
The effect of reciprocity
The principle of reciprocity also plays an important role in why free gifts are so effective. This psychological mechanism means that when someone receives something of value, however small, there is a kind of subtle social pressure to do something in return. This feeling can manifest itself in a form of loyalty, recommendations or future purchases.
For example, imagine attending a business event and receiving a well-stocked goody bag on arrival. Besides the standard promotional items, it also includes a luxury notebook personalised with your name. This simple, personal gesture makes you feel appreciated. It increases the likelihood that you will do business with them again in the future. Even if you don’t immediately realise it.
The effect of reciprocity is often even stronger in business-to-business relationships, because business decisions are often based on trust and long-term partnerships. When a company receives a thoughtful gift, such as a personalised item, the recipient not only feels appreciated but also subtly obliged to reciprocate this appreciation. This can lead to more repeat purchases, longer collaborations and recommendations to other companies because the relationship goes beyond business transactions. It is more about mutual respect and partnership.
Increasing customer satisfaction with premiums
Giving a premium does more than just create a positive association with your brand. It also helps boost customer satisfaction. Customers feel appreciated and seen when they receive a gift. Moreover, offering a premium can be another opportunity to remind your customer about your business. Especially when this is a regularly used gift, such as a water bottle or a notebook. This appreciation combined with the recurring contact moment creates a lasting impression and boosts customer satisfaction.
The advantages of premiums at a glance
- Enhanced brand recognition: premiums help keep your brand top of mind.
- Greater loyalty: they create a sense of appreciation and strengthen the bond with your customers.
- Positive brand associations: premiums are often associated with positive experiences, which reinforces your brand perception.
- Activating reciprocity: free gifts can lead to reciprocal actions, such as recommendations or repeat purchases.
- Higher customer satisfaction: customers feel appreciated and seen, boosting their satisfaction.
- Support for brand consistency: by integrating premiums into your communications, you provide a consistent brand experience.
Make a difference with premiums
Premiums can make a difference in a world where customers have more and more choices. By strategically focusing on these little extras, you not only increase customer satisfaction, but also strengthen loyalty and brand recognition. At EMP Brandkeepers, we would love to help you make the most of the power of premiums.
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This blog was written by:
Michael Niebourg
“Quick to ramp up and well-organised!”
